Caliber Collision to launch $1.85 billion term loan B on Tuesday

By Sara Rosenberg

New York, Jan. 11 – Caliber Collision (Wand NewCo3 Inc.) is set to hold a bank meeting at 1:30 p.m. ET in New York on Tuesday to launch a $1.85 billion seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies LLC, SunTrust Robinson Humphrey Inc. and BMO Capital Markets are the lead arrangers on the deal.

The term loan is being done in connection with the merger of Caliber Collision and Abra Auto Body Repair of America.

As part of the transaction, Hellman & Freidman LLC, Abra’s majority shareholder, will become the majority shareholder of the combined company. Omers, a majority stakeholder in Caliber, and Leonard Green & Partners LP, a minority stakeholder in Caliber, will remain significant minority shareholders in the combined company.

Proceeds from the term loan will be used to refinance existing debt, purchase a portion of existing Caliber equity from Omers, Leonard Green and other shareholders, purchase non-Hellman & Freidman Abra equity and pay related fees and expenses.

Closing is expected early this year.

Caliber Collision is a Lewisville, Texas-based collision repair company. Abra is a Brooklyn Park, Minn.-based provider of vehicle repair services.

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